SLM-Unit-01-MB0046

Marketing Management Unit 1

Sikkim Manipal University Page No. 1

Unit 1 Introduction to Marketing

Structure:

1.1 Introduction

Learning Objectives

1.2 Market and Marketing

1.3 The Exchange Process

1.4 Core Concepts of Marketing

1.5 Functions of Marketing

1.6 Importance of Marketing

1.7 Marketing Orientations

1.8 Summary

1.9 Terminal Questions

1.10 Answers

1.11 Mini-case

1.1 Introduction

Marketing is one activity which all of us seem to observe around us. Any

time you try to buy something, marketing has a role to play. It is often

viewed by many as being advertising or sales promotion or marketing

research. But it is a concept much larger than any of them or all of them

put together. Marketing consists of all those activities designed to create

exchanges which satisfy human or organizational needs or wants in a way

that brings profit for the firm. It performs the task of both identifying and

satisfying customer needs. This helps business enterprises in anticipating

customer demand and creating satisfied customers through conception,

production, promotion and physical distribution of goods and services. No

example can better illustrate this than the popular mobile phone. The need

to communicate from anywhere to anywhere gave way to a portable device

without the requirement of wires.

This unit deals with the meaning, importance and functions of marketing.

You will be able to read in some detail the earlier concepts of marketing

under which companies have been conducting marketing activities and the

modern concepts which are now being used are explained in detail.



Learning Objectives

This introductory unit will help you get familiar with important concepts in

marketing. After reading this unit you should be able to

Define market and marketing.

Understand the concepts and functions of marketing.

Explain the importance of marketing.

Differentiate between types of marketing orientations.

Evaluate how marketing function has changed over a period of time.

1.2 Market and Marketing

What is Market?

Originally, a “Market” was a public place in a town or village, where

household provisions and other objects were available for sale. The

definition of market has expanded in this globalized world. The traders may

be spread across a whole town, or city or region or a country and yet form a

market. For example, stock market, Oil & Oilseeds market, Steel or Metals

market etc. where people across the countries can participate in the

business without being face to face.

The essential features of a market are (i) existence of a commodity / item

which is to be dealt with, (ii) the existence of buyers and sellers, (iii) a place;

be it a certain region, a country or the entire world and even a virtual place

like the internet and (iv) interactions between buyers and sellers to facilitate

transactions.

1. On the basis of Geographic Area

Local Market is the place where the purchase and sale of goods / services

involve buyers and sellers of a small local area. The example of local market

is a village or a town market. In this market, day to day requirements like

vegetables, fruits, meat and fish are sold.

National Market

When the trading involves both buyers and sellers of the entire nation then it

is called as a national market. The Cotton & Textiles Market located in

Mumbai, Tea and Jute Markets located in Kolkata are examples of this. .



Global or World Market

Many manufactured products and specialized services are also sold across

the globe by many companies. Producers of Coca-cola and Sony brand sell

their products in the global market in almost all countries. Indian companies

like TCS, Infosys, and WIPRO sell and provide their IT enabled services to

many companies in different parts of the world. They operate in a Global

Market.

2. On the basis of Nature of Competition in the market

Perfect Market

It refers to a market or market situation where there is perfect competition.

Competition is said to be perfect when (a) the sellers & buyers of a

particular product are so many that none of them have to sell or buy at a

single uniform price. (b) Price is determined by the market forces of supply

& demand. This could be an ideal situation for all marketers. It may not

happen in its pure form. But we can see that there would a large number of

small traders and even manufactures in specific area dealing in similar

products and following more or less the characteristics mentioned above.

You may have seen traders of plastic products or warm clothes or hardware

in a specific local area.

Imperfect Market

In contrast to the perfect competition, the imperfect market will have

imbalance between number of buyers and sellers. This market is further

divided into three parts. They are Monopoly, Monopolistic and oligopoly. In

case of monopoly, single seller dominates the entire market where as in

oligopoly few sellers dominate the market. The details of these types of

markets will be discussed in the pricing unit.

3. On the basis of Nature of Goods Sold

Consumer Goods Market

Definition: A Consumer Goods Market is defined as a market where the

final output of the firm goes for the consumption by individuals or

institutions.

Consumer Goods Market

This is a market, where the buyers who are individuals and institutions

purchase a variety of products and services to satisfy their needs and

wants. For example, an individual buys a chocolate for his personal



consumption whereas a family buys a refrigerator for household or family

consumption. Products sold in consumer goods market are classified as

non-durables, which are frequently purchased such as bathing soap,

detergent etc. and durables such as refrigerator, TV set, washing machine,

car, clothing etc. Non-durables are also known as FMCG – Fast Moving

Consumer Goods, e.g. soap, detergent etc.

Industrial Goods Market

Definition: A business market is defined as a market where output of one

firm goes either as raw material, goods in process or as consumables of

another industry.

This market is also known as organizational or B2B market. It is made up of

organizations including manufacturing units, service firms, government

departments and other business enterprise. The products which are sold in

the industrial goods market are typically, raw materials, machines, machine

tools, equipments, components and spares etc. Generally, the buyers of

industrial goods, purchase products and services either for producing other

products and services which can be sold in the consumer markets or for

using them to facilitate the operation of business enterprise. In many such

cases, the buyer is an organization whose consumption will depend on how

the end user‟s demand will change. Hence, in business markets, the

demand is a derived demand. Demand for steel will depend on the

consumption of steel equipments, rods and other accessories in the

construction and real estate sector.

Non-Profit and Government Markets

This market which consists of Non-Profit organizations such as social-

service agencies, educational organizations, charitable organizations and

Government Departments and agencies needs special skills to sell to them.

These buyers have limited purchasing power which is why pricing for this

market needs to be planned carefully. The Government, which is a large

buyer, makes purchases on the basis of tenders, bids and negotiation.

What is Marketing?

Simply seen marketing is a set of business activities that facilitate

movement of goods and services from producers to consumers. It is an

ongoing process of 1. Discovering and translating consumer needs into

products and services, 2. Creating demands for them, serving the customer



and his demand through a marketing programme of promotion and

3. Distribution to fulfill the company‟s marketing goals in a competitive

environment.

It is evident that the customer, needs and wants are very important aspects

of marketing as of today. Customer focus is the very essence of marketing.

In this era of rapid changes, it is marketing which keeps the business in

close contact with its economic, political, social and technological

environment, as it informs the business of events and changes that take

place in the environment.

American Marketing Association (AMA) offers the following definition of

Marketing. (AMA 2004)

Definition: Marketing is an organization function and a set of processes for

creating, communicating and delivering value to customers and for

managing customer relationships in ways that benefit the organization and

its stake holders.

The Chartered Institute of Marketing defines Marketing as:

Marketing is the management process responsible for identifying,

anticipating and satisfying customer requirements, profitably.

Having understood what a Market is and what is Marketing, we will now look

at what is an exchange and also the exchange process.

1.3 The Exchange Process

Today‟s marketing system has evolved from the time of a simple barter of

goods through the stage of a money economy to today‟s complex

marketing. Throughout all these stages, exchanges have been taking place.

In small town and villages there were artisans such as carpenters, weavers,

potters blacksmiths, barbers and others such service providers who

produced goods and services not only for their own consumption but also for

exchanging with others what they could not produce but needed. This was

barter system of exchange. For a transaction to take place between two

parties, it was necessary that there be needs and wants on both sides. The

development of money came to act as a common medium, and the

exchange process became very easy and convenient. Fig.1.1. below shows

the exchange process under money economy in which products and



services flow to the market from the producers and sellers and money, the

value of the products and services, flow from the buyers to the sellers.

Figure 1.1

Thus, exchange is an act of obtaining a desired product or service from

someone by offering something in return. This exchange process will

continue as long as human society exists because satisfying one‟s needs is

the basic instinct of human beings and no one can produce everything that

he /she needs. For an exchange process to take place, between two or

more parties, few conditions have to be met. They are:

1. Each party has something that could be of value to other party.

2. Each party has desire, willingness and ability to exchange.

3. Each party is capable of communicating and delivering.

4. Each party has the freedom to accept or reject the offer.

Activity 1:

Identify all the elements in the exchange process that were involved

when you visited a new restaurant to have your food. Compare the same

with any of the previous restaurants that you visited. Which factors did

you find unique or similar in the exchange process?

Self Assessment Questions

1. Marketing is often considered to be synonymous with _____________.

2. In perfect competition, price is determined by the market forces of

____________ and ______________.

3. In the case of ______________, a few sellers dominate the market.

4. The industrial goods market is also known as _____________market.

5. ______________________ is the very essence of marketing.

1.4 Core Concepts of Marketing

There are certain fundamental concepts and tasks which one needs to know

to fully understand the marketing function. These concepts provide

Market – Place of

exchange

Producers Sellers

Flow of Goods & Services

Flow of Money Buyers



foundation for a marketing orientation and to manage the marketing

function.

1. Needs and Wants

The marketer‟s task lies in satisfying human needs and wants through the

exchange process. It is alleged that “marketing creates needs” and makes

people buy things they do not actually need. In reality, marketing or

marketers do not create “needs”, but they create “wants”. Some needs are

the basic human requirements of food, clothing, shelter, water and air.

There are other needs such as social needs, esteem needs etc. When we

desire certain specific objects or items to fulfill these needs, they are called

wants. For example, when a person is hungry, he can satisfy his hunger by

taking a simple meal at home. Instead, if he wants to eat a Pizza or a

Hamburger or a 5-Star Hotel meal, it is not a „need‟ but a „want‟. This

difference between wants and needs is not the same as understood in the

subject matter of „economics‟. The marketer identifies the need which may

lie unexpressed by the customer.

The task of a marketer is to influence our wants rather than needs. He does

so along with other influential factors such as socio-cultural forces and

institutions such as family, religion, and different reference groups.

Marketers, suggest to consumers that a particular car would satisfy the

person‟s need for esteem. They do not create the need for esteem, but try to

point out how a particular product would satisfy that need.

2. Demand

Human wants are unlimited, but their resources are limited. When a want for

an object is backed or supported by buying ability, willingness to spend and

desire to acquire a product / service, it becomes a potential demand. The

task of assessing or estimating demand is very crucial for a marketer. He

should understand the relationship of the demand for his product with its

price. Demand forecasting is essential for allocation of resources in a

company. This is the reason why marketers segment consumers on the

basis of their earning capacity. The income of the consumer indicates the

potential to buy.

3. Product and Services

„Product is a generic term used to describe what is being offered by a seller

or marketer. It may be a good, a service or idea, which can be marketed by



offering a set of benefits it offers to customers to satisfy their needs.

However, there is a distinction between products and services. When we

say „product‟, we mean a physical or a tangible product such as a tooth

paste, a refrigerator or a mobile phone, whereas „service‟ refers to an act,

performance, a benefit and indicates intangibility and absence of ownership

or possession. Services can include banking service, hospitality service,

airlines service, health service, entertainment service etc. Thus, a product

can be defined as anything that can be offered to market to satisfy a need or

want. Today, many types of entities such as goods, services, experiences,

events, persons, places and ideas are being marketed.

4. Target Market

Very few products can satisfy everyone in the market. Therefore, marketers

divide the market into distinct groups of buyers who have similar

preferences. These groups are called segments with their own specific

demographic, psychographic and behavioral characteristics. The marketer

decides as to which of these segment or segments offer highest opportunity

for his company. For each of these target markets, the firm develops a

product / service suited to their needs. TATA group has recently designed

an economy car called „NANO‟ which is priced around Rs. 1 Lakh. The

target market for this car is all aspirants who dream of owning a car but

cannot afford cars, which are currently available for minimum Rs. 2.5 Lakh.

A Target Market is the group of people at whom a marketer targets his

marketing efforts to sell his goods and services.

5. Marketing Management

Marketing Management which is also the title of this course refers to all the

activities which the marketing managers, executives and personnel have to

undertake to carry out the marketing function of the firm. It involves

(i) analyzing the market opportunities by undertaking consumer needs and

changes taking place in the marketing environment, (ii) planning the

marketing activities, and (iii) implementing marketing plans and settings

control mechanism to ensure smooth and successful accomplishment of the

organizations goals. Marketing Management is a critical function, especially

in highly competitive markets. It provides competitive edge to an

organization through strategic analysis and planning.



6. Values and Satisfaction

In developed and developing economies, consumers have several products

or brands to choose to satisfy his/her need. Consumers‟ perceptions about

value which they can expect from different products or services depend

upon several factors. Sources that build the customer expectations include,

own experience with products, friends, family members, consumers‟ reports

and marketing communications. Customer value is the difference between

total benefits received and total costs incurred by him in acquiring the

product or services. The types of benefits could be product‟s functional

value, or its brand related image value and any accompanying service

value. The types of costs a customer can incur may be monetary cost and

energy cost.

Value is primarily a function of quality, service and cost. Value increases

with increase in quality and service and decreases with increase in cost.

Value is an important marketing concept and the task of marketing is to

identify, create, communicate, deliver and monitor customer value.

Customers generally experience satisfaction when the performance level

meets minimum performance expectations of a product or service. When

the performance as perceived exceeds the expected performance level, the

customer will be not just satisfied, but delighted. Thus customer satisfaction

or delight with respect to a product or service encourages customers to

come back and repurchase the product or service in future. Satisfied

customers can be an asset to the marketing company over a period of time,

as they will spread favorable word-of-mouth information or opinions.


Are the following statements true or false?

6. The task of a marketer is to influence needs.

7. A want becomes a demand when it is backed by purchasing power.

8. A group of people to whom a marketer targets his marketing efforts is

known as a market segment.

9. The difference between total benefits received and the total costs

incurred by a customer is known as customer satisfaction.



1.5 Functions of Marketing

The delivery of goods and services from producers to their ultimate

consumers or users includes many different activities. These different

activities are known as marketing functions. Different thinkers have

described these functions in different ways. Some of the most important

functions of marketing are briefly discussed below:-

1. Marketing Research and Information Management

Marketers need to take decisions scientifically. Marketing research

function is concerned with gathering, analyzing and interpreting data in a

systematic and scientific manner. The types of market information could

be analysis of market size and characteristics, consumer tastes and

preferences and changes in them from time to time, channels of

distribution and communication and their effectiveness, economic,

social, political and technological environment and changes therein. A

company can procure such information from specialized market

research agencies, government or can decide to collect themselves.

2. Advertising and Sales Promotion – Advertising is a mass media tool

used to inform, persuade or remind customers about products or

services. It is an impersonal form of communication targeted at a chosen

group through paid space or time.

Sales Promotion is a short-term incentive given to customers or

intermediaries to promote sales. It supplements advertising and

personal selling and can be used at the time of launching a new product

or even during its maturity period.

3. Product Planning and Management – A Marketer should identify the

needs and wants of consumers, develop suitable products / services

and make them available. Marketer is also required to maintain the

product and its variations in size, weight, package and price range

according to the changing needs and requirements of his customers.

Information available through Market Research helps product

management in taking appropriate decisions while planning the

marketing efforts.

4. Selling – This function of marketing is concerned with transferring of

products to the customer. An important part of this function is organizing



sales force and managing their activities. Sales force management

includes recruitment, training, supervision, compensation and evaluation

of salesmen. They need to be assigned targets and territories where

they can operate. The salesmen interact with prospective purchasers

face-to-face in order to sell the goods. The purchaser may be end

customer or an intermediary, such as a retailer or a dealer.

5. Physical Distribution – Moving and handling of products from factory to

consumers come under this function. Order processing, inventory,

management, warehousing and transportation are the key activities in

the physical distribution system.

6. Pricing – This is perhaps the most important decision taken by

marketer, as it is the only revenue fetching function and success and

failure of the product may depend upon this decision. Therefore, the

decision regarding how much to charge should be taken such that the

price is acceptable to the prospective buyers and at the same time

fetches profits for the company. While deciding on the price, the factors

to be considered are competition, competitive prices, company‟s

marketing policy, government policy, and the buying capacity of target

market etc.

Activity 2:

Take a nearby departmental store and list out the various marketing

schemes (old and new) undertaken by the store to promote its products

and services. Did you find any drastic changes in the marketing efforts or

is the store continuously improving its marketing?

1.6 Importance of Marketing

Peter Drucker, the famous management thinker in one of his classic articles

has said “Marketing is everything”. All other activities in the organization are

support services to the marketing strategy that the company pursues.

Marketing is important not only to the company but to the consumers and

society and to the economy.

Consumer stands to benefit from marketing activities. He has more

alternatives to choose from, improved and better quality products are

available and he is able to buy goods at convenient locations. Thanks to



much improved customer service, a consumer is able to complain and

expects his complaint to be attended in reasonable time. He can now buy

with credit or debit card or cash or on installments.

For the society as a whole, marketing is important because it acts as a

change agent making people use latest products and improves the standard

of living of the people. As we know, the main objective of marketing is to

produce products and services for the society as per their needs and tastes,

and while doing so it creates demand for these goods and services,

encourages using them, thus leading to higher demand and sales. This

higher demand allows the company to achieve economies of scale in both

production and distribution, resulting in decrease in production and

distribution costs which can be used to reduce prices to consumers.

For a company in any business, marketing is considered to be the most

important activity. It helps an organization to keep abreast of changes taking

place in the market and consumer tastes and preferences through market

research. Based on this reliable data, it responds to these changes by

rectifying any drawbacks in its products or changing its competitive strategy.

Thus the company‟s decision- making and planning are not based on just

hunches but on sound market information. The firm that follows such

practices is sure to prosper under all conditions. Marketing provides an

effective channel of communication to the company with its consumers by

way of advertising and sales promotion. Marketing thus brings revenue and

earns goodwill for the company.

Successful operation of marketing activities creates, maintains and

increases the demand for goods and services in the economy. It results in

the increased level of production. This, in turn, increases the national

income, which is beneficial to the economy. Marketing operations require

the services of intermediaries such as wholesalers, retailers, transporters,

and service provides for storage, finance, insurance and advertising. These

services provide employment in large numbers.

1.7 Marketing Orientations

Companies adopt different philosophies to market their products and

services. An analysis of evolution of marketing thought over last several

decades and reliance of marketing managers on specific marketing



orientations, leads us to classify marketing concepts into several categories.

These categories reflect the philosophies guiding the company‟s marketing

efforts. The philosophy adopted by a company should strike a balance

between the interests of the company, customers, society and public. There

are five competing concepts and an organization can choose any one of

them for conducting marketing activities.

1. The Production Concept – This is one of the oldest concepts of

marketing and assumes that consumers will prefer those products and

services that are easily available and affordable. Companies which

adopt this philosophy for their marketing should focus on improving

production and distribution efficiency.

Production concept is a useful philosophy under situations where

demand is more than supply and the companies are trying to increase

production and when production costs are high. Companies are trying to

achieve economies of scale. Under such conditions, it is likely that

quality of products is neglected and service to customers is very

impersonal.

2. The Product Concept – Assumes that consumers will prefer those

products that offer quality, performance or innovative features.

Managers in such companies focus on developing superior products and

improving the existing product lines by devoting time to innovations.

The problem with this orientation is that managers forget to read the

customer‟s mind and launch products based on their own technological

research and scientific innovations. Very often it is observed that

innovations enter the market before the market is ready for the product,

or is aware or clear about its benefits.

This product-oriented management with excessive attention to product

rather than customer leads to short-sightedness about business. This

was termed as “Marketing Myopia” by Prof. Theodore Levitt of Harvard

Business School. He recommended that companies should have a

clearer and broader vision of business they are in and should adapt to

the changes in the needs of the customers and in the environment. For

example, a company like KODAK should not think they are only in the

business of selling cameras and photographic films. They should believe



that they are in the business of preserving memories for customers and

photography in general.

3. The Selling Concept – The Selling concept assumes that consumers

generally, will not buy a company‟s products unless aggressive selling

and promotion efforts are undertaken. It also holds that consumers

typically do not think of buying these products which are non-essential

goods without persuasion or aggressive selling action. Use of this

concept leads people to believe that marketing is all about selling. The

problem with this approach is the belief that the customer will certainly

buy the product after persuasion and will not complain even if

dissatisfied. In reality, this does not happen and companies pursuing

this concept fail in business. This approach is applicable in the cases of

unsought goods such as life insurance and vacuum cleaners, that

buyers normally do not think of buying.

4. The Marketing Concept – The Marketing Concept proposes that a

company‟s task is to create, communicate and deliver a better value

proposition through its marketing offer, in comparison to its competitors;

to its target segment and that this customer oriented approach only can

lead to success in the market place.

Today, marketing function is seen as one of the most important

functions in the organization. Many marketers put the customers at the

centre of the company and argue in favor of such a customer

orientation, where all functions work together to respond, serve and

satisfy the customer.

Many successful and well known multinational companies have adopted

marketing concept as their business and marketing philosophies. Many

Indian companies in the banking and other service sectors follow

customer orientation and service as their motto. According to this

concept, a company‟s marketing effort must start right from identifying,

through Market Research, exact needs and wants of the target market.



Table 1.1: Differences between Selling and Marketing Concepts

Selling Concept Marketing Concept

1. Emphasis on Product Emphasis on Customer needs and wants

2. Goal is to sell what is produced

Goal is to produce what is needed by the customers

3. Aggressive Sales and Promotion used

All the departments of the company work together for serving the customers

4. Objective is profits through Sales volume

Objective is profit through customer Satisfaction

5. The Societal Marketing Concept – This marketing concept

emphasizes that the key task of the company is not only to determine

the needs and wants of the target markets and deliver the desired

satisfaction, but also to preserve and enhance the consumers‟ and

society‟s overall well being.

This concept calls upon marketers to build social, ethical and environmental

considerations into their marketing practices. It seems to be an appropriate

philosophy for marketing at this time when there is environmental

degradation and social services have been neglected in India. In the recent

years, we have been witnessing a lot of complaints about products and

packaging that are harmful to health and ecology. Marketers must come

forward to protect the interest of both the customers and the environment

and this they can achieve by adopting or following the societal marketing

concept.

Activity 3:

Make a note on the selling strategies of a vegetable vendor near to your

locality and then compare his selling strategies with another vendor in the

same area.


Match the following sets –

Set A

10. Product concept

11. Production concept

12. Marketing concept

13. Societal Marketing concept

14. Selling concept



Set B

a) Mass production and distribution

b) Marketing Myopia

c) Aggressive promotion

d) Customer satisfaction

e) Ethical marketing practices

1.8 Summary

Marketing is a dynamic and all pervasive area in business

The main functions of Marketing are Marketing Research and

Information Management, Product Planning, Advertising and Sales

Promotion, Selling, Physical Distribution and Pricing.

Marketing plays an important role in the economic development of a

country like India. It is also very important from the customer and

societal point of view as it helps improve the standard of living of people

through better product and service offers.

Marketing as a concept has evolved over a period of time and has

witnessed changes and modifications in its philosophy. There are five

concepts which describe this development and offer ways to companies

on how to conduct their business – Production Concept, Product

Concept, Selling Concept, Marketing Concept and Societal Marketing

Concept. However, the first three are of limited use today.

List of Key Terms

Market

Perfect market

Consumer Goods market

Satisfaction

Marketing concepts

Societal marketing concept

Marketing Management

1.9 Terminal Questions

1. What are the major differences between consumer and industrial

markets?

2. Explain the core concepts of marketing with suitable examples.



3. List out the relative advantages and disadvantages of the different

marketing orientations.

4. Marketing is more than just selling. Explain.

1.10 Answers

Answers to Self Assessment Questions:

1. Selling/Advertising/Sales Promotion/Marketing Research

2. Supply and Demand

3. Oligopoly

4. Organizational/B2B

5. Customer focus

6. True

7. False

8. False

9. Marketing Research

10. 10b

11. 11a

12. 12d

13. 13e

14. 14c

Answers to Terminal Questions:

1. Refer to 1.2

2. Refer to 1.4

3. Refer to 1.7

4. Refer to 1.5

1.11 Mini-Case

How Euro Airlines became a Marketing Oriented Company?

When Tom Carlton became president of Euro Airlines, the company was

making losses. The earlier management had tried to counter this problem by

cutting costs. Carlton felt this was not the correct solution. According to him,

the company needed to find ways of increasing business and revenues. At

this point, the airline catered to all classes of travelers and did not offer any

special advantages to any one class. Therefore, the first task was to identify



the target market. Carlton decided to focus on businessmen who fly

frequently. This was a segment which was being targeted by many other

airlines. They were offering various services like free drinks, wider seats and

so on. Market research was done to find out what the customers wanted.

The findings revealed that punctuality was the most important consideration

for business flyers. They also wanted to be able to check in quickly and

retrieve their luggage quickly on arrival at their destination.

Several groups were formed to come up with different ideas on how these

goals could be achieved. Hundreds of proposals were submitted, of which

150 were adopted. One of the most important was to make all employees

more customer-oriented. Carlton figured that the average passenger comes

into contact with 5 employees on an average flight. Each contact could

contribute to customer satisfaction or dissatisfaction with the airline. To

create the right attitude, the front line staff was sent to two day service

seminars. The managers were sent on three week courses. Carlton

regarded the front-line staff, who interacted with passengers daily as the

most important people in the company. The managers‟ job was to provide

support to the front line people, to help them do their job better. His job as

President was to help the managers in this task.

As a result of these measures, Euro Airlines became the most punctual

airline in Europe within six months. A special service was introduced where

travelers who were staying in Euro Airlines hotels could have their luggage

sent directly to the airport for check in. The speed with which luggage was

unloaded on landing was also improved. Thus the airline was able to

improve its reputation with the business flyers, which in turn resulted in a

significant increase in full fare travel with them.

From the above case, identify the different concepts in marketing.

Documents

SLM-Unit-01-MB0046